Belgium Co. is constructing a tunnel for 800 million. Construction began in 2011 and is estimated to be completed in 2016. At December 31, 2013, Belgium has incurred costs totaling 356 million with 85 million of that incurred in 2013, 143 in 2012, and 128 in 2011. Belgium received 356 million in total progress payments to date but future activity is tenuous and its cost numbers are highly uncertain. What amount of revenue should Belgium Co. recognize for the year ended December 31, 2013?

A. No revenue should be recognized until the contract is completed in 2016.
B. 356 million.
C. 271 million.
D. 85 million.

The following is a random list showing the account balances of various assets, liabilities, revenues and expenses for Jones Painting Company at December 31, 2020, the end of its first year of operations.

Accounts receivable 7,100

Acounts payable 2,500

salary expense 3,200

repair expense 700

truck 8,300

equipment 6,700

unearned revenue 3,000

cash 6,100

supplies expense 1,600

service revenue 15,800

Gasoline Expense 3,000

Salary payable 2,100

3. the Statement of owners equity would show an ending balance of

A. 21,800

B. 18,800

C. 20,600

D. 25,300

E. 26, 500

. Use the information given below to create the Income Statement, Statement of Changes in Owner’s Equity and Statement of Financial Position for Mikes Maintenance Company for the year ended Dec. 31 .

The balances for the accounts of Mike's Maintenance Co. for the year ended December 31 are as follows.

Assignment 1

Willy's Widget, a monopoly, faces the following demand schedule (sales in widgets per month):

Calculate marginal revenue over each interval in the schedule. If marginal cost is constant at $40 and fixed cost is $300, what is the profit maximizing level of output? What is the level of profit? Explain your answer using marginal cost and marginal revenue.

Repeat the exercise for MC = $18

1. Kidlet Toys Ltd. designs and manufactures toys for the early childhood education market. The company sells its products to national toy retailers as well as to independent toy stores across North America. The company allows its customers to return any unsold products within 90 days of receiving the products from Kidlet. The rationale for this policy is to stimulate sales, especially among the independent toy stores. Returned toys are discarded.

Explain when Kidlet would recognize revenue under the contract-based approach. Also explain what the company would have to do to determine the amount of revenue that could be recognized.

On October 1, 2018, Farmer Fabrication issued stock options for 180,000 shares to a division manager. The options have an estimated fair value of $5 each. To provide additional incentive for managerial achievement, the options are not exercisable unless divisional revenue increases by 5% in four years. Suppose that Farmer initially estimates that it is not probable the goal will be achieved, but then after one year, Farmer estimates that it is probable that divisional revenue will increase by 5% by the end of 2020.

Required:

1. What is the revised estimate of the total compensation?
2. What action will be taken to account for the options in 2019?
3. Prepare the journal entries to record compensation expense in 2019 and 2020.

Billy's Builders just obtained a contract for $500,000 to build a home for Mr. & Mrs. Mary. Jones estimates his total cost on the job to be $400,000. During the first month of the job, the following transactions occur: • Cash of $10,000 is paid for permits, fees and other startup costs. • An invoice is received from the excavation subcontractor for $10,000. • The first progress billing is prepared for $60,000.

If the above transactions were the only ones Billy's Builders had for the month, what will the revenue, expense, and profit look like under each accounting method

In its income statement for the year ended December 31, 2017, Sandhill Co. reported the following condensed data.

Salaries and wages expenses     $697,500                             

Loss on disposal of plant assets $ 125,250

Cost of goods sold 1,480,500                     

Sales revenue   3,315,000

Interest expense 106,500                            

Income tax expense 37,500

Interest revenue 97,500                              

Sales discounts   240,000

Depreciation expense 465,000                  

Utilities expense 165,000

Prepare a multiple-step income statement.

Two accountants for the firm of Elwes and Wright are arguing about the merits of presenting an income statement in a multiple-step versus a single-step format. The discussion involves the following 2017 information related to Sandhill Company ($000 omitted).

Common shares outstanding for 2017 total 40,550 (000 omitted).

Universal foods issued 12% bonds, dated January 1, with a face amount of $155 million on January 1, 2018 to Wang Communcations. The bonds mature on December 31, 2032 (15 years). The market rate of interest for similar issues was 14%. Interest is paid semiannually on June 30 and December 31. Universal uses the straight line method. Universal Foods sold the entire bond issue to Wang Communications.

Required: 1-3. Prepare the journal entry to record the purchase of the bonds by Wang Communications on January 1, 2018, interest REVENUE on June 30, 2018 and interest REVENUE on December 31, 2025.